The Supreme Court mandated that an accused must be heard before cognizance under the PMLA, emphasizing due process rights. The ruling reinforces the necessity of judicial prudence in the application of preventive measures under the PMLA.
Supreme Court Mandates Hearing Before PMLA Cognizance
The Supreme Court has set aside a cognizance order under the Prevention of Money Laundering Act (PMLA), ruling that the accused had to be heard according to the first proviso to Section 223(1) BNSS prior to the cognizance being taken. This determination underscores the fundamental principle of fair hearing in legal proceedings.
The court reiterated the critical nature of informing and providing an opportunity for defense to the parties involved in cognizance orders, reinforcing the necessity of due process in serious allegations of money laundering.
For practitioners specializing in criminal and financial regulatory law, this ruling highlights the legal framework surrounding cognizance under the PMLA and urges a careful approach to compliance with the procedural rights of accused individuals.
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